Introduction to Opportunity Identification

Quick Summary: Ask a few basis questions before you start and answer them objectively.

Abstract:

The articles in this chapter discuss issues that a would-be entrepreneur need to carefully consider before they take the plunge and actually start the process of starting a company. The first step is to ask some tough questions that only the entrepreneur can answer. From the articles in Chapter 2.02, "Principle One: Stay in Business", it should be obvious that success is not easy and, in most cases, is a long shot.

There is a strong likelihood that anyone reading this chapter has already determined that they have identified a significant business opportunity. Commonly, they feel that they have the skill set or the “secret sauce” ingredients that are sure to make it successful; perhaps overnight! Such optimism is essential for every entrepreneur. The envisioned rewards, whether they are financial, notoriety, self-satisfaction, or other motivations make it worth taking the risk. It is, however, prudent to take a step back and ask some very basic questions about the opportunity as well as you, yourself, to help ensure that you have objectively thought about some of the implications of taking the entrepreneurial plunge. The articles in this chapter list some of the issues that should be considered.

Chapter Sections and Summaries

Hard Questions to Answer

It is easy to envision overnight success for your idea, thinking how easy it will be to pick up those pots of gold that are readily available that everyone else has missed. Optimism is definitely required but a dose of reality needs also to be present.

Reality Check

Start out with “Why hasn’t someone else already done this” and then ask, “Am I solving a problem that customers agree needs to be solved now and are will to pay for”? Finally, ask” Is this business sustainable?” Let your objective answers guide your actions.

Turning the Key

Once you have convinced yourself, you have something worthwhile to pursue, get started but don’t “put the pedal to the metal” until you have looked around carefully.

Chapter Articles and Summaries

Introduction to Starting a Company

From the idea stage to the on-going operations period, challenges are everywhere.

Introduction to Opportunity Identification

Ask a few basic questions before you start and answer them objectively.

Works for Non-Profits Too

Sound business practices should be followed by both for-profit and non-profit organizations.

What Is Your Goal For The Business

Do you want to run or sell your business in the long term?

Just Because You Can

Many creative ideas are nice to talk about but should not be pursued.

Are You the Right Person

There are different skill sets required for an entrepreneur and a CEO.

Can The Business Ever Scale, Should It

Doing more of the same is usually not an effective method to grow a business.

Show Your Commitment First

Employees and investors need total confidence in you.

Chief Everything Officer

There are many roles that an entrepreneur must fulfill before becoming a Chief Executive Officer.

Is it a Feature, Product or Company

Before you start a business, ask yourself what is next.

Misplaced Encouragement

Truthful feedback, even if it hurts others feelings, may be appropriate in the long run.

It is Tough to Get Real

Step back and take a practical look at your business’s potential from the customer’s perspective.

Firing Your Brother-In-Law

Hire only people that you need and not friends and relatives that you may have to terminate.

What Does the Customer Really Want

Your perception of what the customer wants may be very different than the customer’s.

Business Variables are Constant

Planning ahead to address all of the elements required for the company to be successful is crucial.

Always Dance the Investor Dance

Carefully build a business plan that can stand up to the evaluation of independent investors.

Everything is Easy Until You Start

It is easy to envision the future, but it is hard to reach.

Start Before You Start

Divorce yourself from your new idea and ask some fundamental questions before you commit.

Starting Versus Beginning

The real issues only appear after you actually begin to develop a product or service offering.